Reinsurance provider RenaissanceRe (NYSE: RNR) missed Wall Street’s revenue expectations in Q1 CY2026, with sales falling 36.8% year on year to $2.19 billion. Its non-GAAP profit of $13.75 per share was 22.5% above analysts’ consensus estimates.
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RenaissanceRe (RNR) Q1 CY2026 Highlights:
- Net Premiums Earned: $2.18 billion vs analyst estimates of $2.37 billion (19.7% year-on-year decline, 7.9% miss)
- Revenue: $2.19 billion vs analyst estimates of $2.79 billion (36.8% year-on-year decline, 21.4% miss)
- Combined Ratio: 72% vs analyst estimates of 87.1% (1,510 basis point beat)
- Adjusted EPS: $13.75 vs analyst estimates of $11.22 (22.5% beat)
- Book Value per Share: $250.48 (27.7% year-on-year growth)
- Market Capitalization: $13.42 billion
Company Overview
Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.
Revenue Growth
Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Luckily, RenaissanceRe’s revenue grew at an incredible 17.6% compounded annual growth rate over the last five years. Its growth beat the average insurance company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. RenaissanceRe’s annualized revenue growth of 10.2% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, RenaissanceRe missed Wall Street’s estimates and reported a rather uninspiring 36.8% year-on-year revenue decline, generating $2.19 billion of revenue.
Net premiums earned made up 88.3% of the company’s total revenue during the last five years, meaning RenaissanceRe barely relies on non-insurance activities to drive its overall growth.
Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
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Book Value Per Share (BVPS)
Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
RenaissanceRe’s BVPS grew at an exceptional 13.8% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 21.1% annually over the last two years from $170.92 to $250.48 per share.
Key Takeaways from RenaissanceRe’s Q1 Results
It was good to see RenaissanceRe beat analysts’ EPS expectations this quarter. On the other hand, its revenue missed and its net premiums earned fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. Investors were likely hoping for more, and shares traded down 1.1% to $307.50 immediately after reporting.
Is RenaissanceRe an attractive investment opportunity right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
